Pound Sterling (GBP) Exchange Rates Soar on Reports of Financial Services Deal
The Pound (GBP) rocketed higher against many of its peers on Thursday, with initial gains being driven by reports that Theresa May had reached a tentative deal with the EU to provide UK financial services firms with continued access to European markets.
Sterling then found further support from the Bank of England (BoE) later in the afternoon as Governor Mark Carney appeared optimistic regarding growth in a smooth Brexit while also hinting at future rate hikes.
However the release of the UK’s latest construction PMI could see the Pound forced to cede some of these gains later this morning, should growth in the UK’s construction sector remain limited.
GBP/EUR Exchange Rate Jumps amid Lull in Eurozone Data
The Pound Euro (GBP/EUR) exchange rate rose around half a cent during yesterday’s session with a lull in Eurozone data leaving the single currency vulnerable to Sterling’s advances, with ongoing concerns regarding Italy’s budget doing little to offer support.
Looking ahead the Euro may remain on the defensive throughout today’s session as well, with Eurozone data expected to confirm Eurozone manufacturing growth slowed to a 26-month low in October.
GBP/USD Exchange Rate Soars as Safe-Haven Demand Softens
The Pound US Dollar (GBP/USD) exchange rate experienced its biggest rally in nine-months on Thursday as the jump in Sterling coincided with broad weakness in USD, with safe-haven demand being trimmed by suggestions from Donald Trump that progress is being made in US-China trade talks.
Just had a long and very good conversation with President Xi Jinping of China. We talked about many subjects, with a heavy emphasis on Trade. Those discussions are moving along nicely with meetings being scheduled at the G-20 in Argentina. Also had good discussion on North Korea!
— Donald J. Trump (@realDonaldTrump) November 1, 2018
The ‘Greenback’s’ losses were further accelerated by the publication of the ISM manufacturing PMI, which showed US factories had expanded at their slowest pace for six months.
There’s a good chance the US Dollar may look to recoup some of these losses later today however, with an expected jump in US payrolls potentially helping to lift the US currency once again.
GBP/CAD Exchange Rate Rises as Canadian Factory Growth Underperforms
The Pound Canadian Dollar (GBP/CAD) exchange rate shot up around a cent yesterday, bringing the pairing to a one-week high as some lacklustre Canadian manufacturing figures and a drop in WTI crude prices dragged on the ‘Loonie’.
GBP/AUD Exchange Rate Fluctuates on Trump Trade Hopes
After shooting higher yesterday evening, the Pound Australian Dollar (GBP/AUD) exchange rate fell back in overnight trade, with the ‘Aussie’ being turbo charged following reports US President Donald Trump is seeking to reach a trade agreement with China at the G20 summit later this month.
GBP/NZD Exchange Rate Volatility Prompted By Rising Risk Appetite
The Pound New Zealand Dollar (GBP/NZD) exchange rate met a similar fate to GBP/AUD overnight, with hopes the US may be close to resolving its trade dispute with China bolstering risk-sensitive currencies such as the ‘Kiwi’.